LEGRAND / 2018 Registration document

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CONSOLIDATED FINANCIAL INFORMATION CONCERNING THE GROUP’S ASSETS, LIABILITIES, FINANCIAL POSITION AND RESULTS

CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS FOR THE YEARS ENDED DECEMBER 31, 2018 AND DECEMBER 31, 2017

France, Italy and North and Central America are each considered to be a single cash-generating unit (CGU), whereas both the Rest of Europe and Rest of the world regions include several CGUs.

In the Rest of Europe and Rest of the world regions, no final amount of goodwill allocated to a CGU represents more than 10% of total goodwill. Within these two regions, China, India and South America are the largest CGUs.

Changes in goodwill can be analyzed as follows:

December 31, 2018

December 31, 2017

(in € millions)

Gross value at the beginning of the period

3,967.8

3,159.9

W Acquisitions

382.9

1,510.6

W Adjustments

(42.1)

(486.0)

W Translation adjustments

50.4

(216.7)

Gross value at the end of the period

4,359.0

3,967.8

Impairment value at the beginning of the period

(37.5)

(38.0)

W Impairment losses

0.0

0.0

W Translation adjustments

0.5

0.5

Impairment value at the end of the period

(37.0)

(37.5)

NET VALUE AT THE END OF THE PERIOD

4,322.0

3,930.3

Adjustments correspond to the difference between provisional and final goodwill. Changes in goodwill for the period ended December 31, 2017 include Milestone’s provisional goodwill of $723 million. Milestone’s final goodwill, amounting to $722 million, is detailed as follows:

(in $ millions)

(in € millions)

Trademarks

86

73

Patents

58

49

Other intangible assets

239

204

Tangible assets

25

21

Inventories

60

51

Trade receivables

71

61

Trade payables

32

27

Net financial debt

(9)

(8)

8

Other net liabilities

28

24

Total net assets excluding final goodwill

488

416

Purchase price paid*

1,210

1,032

Final goodwill

722

616

* This amount, on a cash free basis, shall be read $1,201 million.

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LEGRAND

REGISTRATION DOCUMENT 2018